Ann: Progress update, page-4

It is a bit of a worry that so much of the control is now in medlines hands and their primary strategy is to use SIM as a labour/cost saving trojan horse to penetrate market share and ultimately sell greater volumes of their own manufactured diapers to new customers. It seems a fundamental conflict of interest to SIMs claim of reducing diaper volumes for its customers.

According to the shaw report the agreement with medline has a minimum sales volume to maintain exclusivity. I hope Simavitas management have a Plan B ready and waiting to diversify the distribution and sales channels in the usa if Medlines trojan horse strategy fails to deliver significant sales volume for Simavita.

If the current strategy in the usa fails to deliver over the next 12 months, the companys capital will dry up and they will be at the well again for the 3rd time. The well maybe dry in 12 months.